The new year is bringing new carrier rate changes from both FedEx and UPS. Both major carriers have published significant updates taking effect in late December 2025 and January 2026 that will impact shipping costs across multiple service levels and surcharge categories.

FedEx is changing how Home Delivery surcharges are assessed and introducing new cubic volume criteria for Additional Handling and Oversize charges. Meanwhile, UPS is implementing an average 5.9% rate increase across its services, updating Area Surcharge ZIP codes, and adjusting zone alignments that will affect base shipping rates for many origin-destination pairs.

These changes will directly impact your shipping costs, and with limited time before they take effect, shippers need to understand what’s changing and how to prepare. Here’s what you need to know about the latest rate updates from both carriers.

UPS Shipping Rate Updates – Effective December 22, 2025

2026 UPS Daily Rates Information

  • Effective Date: December 22, 2025
  • Details: UPS is implementing multiple changes to daily package rates:
    • The list of ZIP codes to which Area Surcharges apply will change
    • The list of ZIP codes aligned to certain Zones will change
    • Daily transportation rates for UPS Ground, UPS Air, and International services will increase an average net of 5.9%
    • The weekly fee for renting a printer will increase from $3.00 to $9.99
  • Why It Matters: These combined changes will impact shipping costs in multiple ways. Delivery Area Surcharge ZIP code changes mean some destinations may become more expensive while others may see surcharges removed. Zone realignments will affect base rates for certain origin-destination pairs even before the 5.9% rate increase is applied. The actual impact on your costs will vary based on your shipping characteristics and UPS agreement terms. 

Full details on these changes are available on the UPS shipping costs and rates page.

FedEx Shipping Rate and Surcharge Updates: Effective January 12, 2026

Home Delivery Surcharge Application Change

  • Details: FedEx Date Certain Home Delivery®, FedEx Evening Home Delivery®, and FedEx Appointment Home Delivery® surcharges will now be applied per package rather than per shipment.
  • Why It Matters: Shippers sending multiple packages in a single residential order will see significant cost increases. Previously, one surcharge applied per shipment regardless of package count. Now, each individual package incurs the fee separately—a three-package order will pay three times the surcharge instead of one.

Additional Handling Surcharge — Dimension Criteria Update

  • Details: A new cubic volume criterion has been added. Additional Handling Surcharge — Dimension will now apply to any package with a cubic volume greater than 10,368 cubic inches (calculated as length x width x height).
  • Why It Matters: More packages may now qualify for this surcharge even if they previously avoided it based on length or girth measurements alone. This expands the situations where the fee applies beyond existing dimensional criteria.

Oversize Charge Criteria Updates

  • Details: Two new criteria have been added to the Oversize Charge assessment:
    • Cubic volume greater than 17,280 cubic inches (length x width x height)
    • Actual weight greater than 110 lbs
  • Why It Matters: Packages can now trigger the Oversize Charge through cubic volume and weight, in addition to existing criteria. These new thresholds work alongside existing length and girth requirements, potentially increasing the number of packages subject to this costly surcharge.

For context on how these surcharges fit into FedEx’s broader fee structure, review our guide on FedEx Shipping Surcharges 2025. Full details on these changes are available on the FedEx rate changes page.

What These UPS and FedEx Surcharges Mean for Your Shipping Strategy

Both carriers are implementing changes that will increase costs for many shippers, and with these updates taking effect within weeks, preparation time is limited. The combination of FedEx’s per-package home delivery fees, new cubic volume thresholds, and UPS’s rate increases across multiple dimensions means most shippers will see their costs rise.

Here are the key actions you should take now:

  • Review your current package dimensions against FedEx’s new cubic volume thresholds (10,368 cubic inches for Additional Handling, 17,280 cubic inches for Oversize)
  • Audit residential multi-package shipments to calculate the impact of per-package Home Delivery surcharges
  • Evaluate your current baseline exposure to compare against updates coming in 2026 (once available)
  • Track average zone KPIs to understand the impact of each change, or implement Reveel’s parcel spend management software to model the impacts of these changes
  • Understanding the financial impact of these new changes can help shippers determine the proper course of action—whether that is full RFP, negotiating a new amendment, or reevaluating pricing strategies.

Stay Ahead of Carrier Rate Changes with Reveel

Tracking and responding to constant carrier rate changes is challenging when you’re managing day-to-day shipping operations. Reveel’s platform provides real-time visibility into how rate updates impact your specific shipping profile, so you’re never caught off guard by unexpected cost increases.Schedule a demo today to see how Reveel can help you stay ahead of shipping cost increases and maintain control over your parcel spend.